Author: administrator

text-align: right; October 18, 2016
text-align: right; (updated October 27, 2016)
text-align: right; Greg Thomson, Director of Research
Note: After this article was posted, Scott Baker, Executive Director of WE Charity, contacted me to provide clarification on a few points. The article below includes changes based on Scott’s letter.
With WE Day going on across the country, donors are seeking information on just what this “WE” is.  Canadians ask why Charity Intelligence’s doesn’t have a report on ME to WE.
The simple answer is that ME to WE is not a charity. It is a for-profit social enterprise that was started by Canadians Craig & Marc Kielburger in 2008 to sell products that empower people to change the world with their everyday consumer choices – primarily paid volunteer trips as well as socially-conscious products. ME to WE has been awarded the top B Corp certification, meeting the rigorous B Lab standards for social and environmental performance, accountability and transparency, one of only ten organizations in Canada to achieve this status.
WE Day is run by ME to WE to “create a powerful and life-changing experience that inspires young people to go out and make a difference in the world,” be that at WE Charity or other non-profits.
Confusing? Well, WE recently rebranded Free the Children as WE Charity in part to reduce the confusion (?!). The charity, social enterprise, and overall WE movement have all been combined under one brand: WE. Donors should note that it is WE Charity that they can donate to. 
Charity Intelligence has not seen the audited financials of ME to WE. WE Charity states that it receives 50% of the annual net profits from ME to WE, which, in 2015, amounted to $837,000, or just under 2% of total revenues for Free the Children / WE Charity. 
WE Charity spends over half of its program spending on domestic programming (which, for some reason includes spending in the US and the UK, although the amount spent in these countries is not disclosed on its CRA T3010 filing), spending 58% of program spending to empower youth to become active global citizens. 
WE Charity also operates international programs, supporting its WE Villages in eight developing communities to help lift them out of poverty.
Interestingly, WE Charity has taken on the $16 million mortgage for the new WE Learning Centre in Toronto as its purchase was made possible by generous targeted donations from long-term supporters of the charity. According to the charity, “the Global Learning Centre will bring service-learning resources to 10,000+ schools around the world, ensuring that every student experiences the empowerment and life skill development associated with service-learning, while these young change-makers benefit their community and world. It will allow WE Charity to better connect with educators and students around the world.”  Charity Intelligence looks forward to hearing about the social results from this significant investment.
To learn more about WE Charity, please view the https://www.charityintelligence.ca/charity-details/82-we-charity-free-the-children” rel=”alternate WE Charity profile.
 

Mega-merger of Canada’s biggest cancer charities: Canadian Breast Cancer Foundation joins Canadian Cancer Society
Updated February 4, 2017
Canadian Cancer Society and Canadian Breast Cancer Foundation announced intentions to merge. Charity Intelligence does not anticipate this merger will raise social impact.  The most obvious gains for donors may come from better cost efficiencies. Charity Intelligence recommends Canadian donors wait and see how this merger unfolds and for cost reductions to materialize.
This is a big Canadian charity merger. Canadian Cancer Society is the 4^th largest Canadian charity measured by donations and public support from special fundraising events. In F2016, Canadian Cancer Society received $142.4 million. Canadian Breast Cancer Foundation was among Canada’s largest-40 charities with annual donations and funding from special events at $35.7 million. Combined, Canadian Cancer Society will reclaim its #2 rank with pro-forma donations and funding of $178.0m behind only World Vision Canada.
With 278 Canadian cancer charities at last count, consolidation is generally a good move. The more obvious need for consolidation is among the smaller charities where there is duplication. There is less operational overlap between Canadian Cancer Society and Canadian Breast Cancer Foundation. Canadian Cancer Society is a multi-service “one stop shop” running programs for Canadians with cancer, advocating for legislative changes (tobacco labeling, tanning beds) and funding research in all cancer areas. Canadian Breast Cancer Foundation’s strengths are in corporate fundraising with a narrower focus on granting to breast cancer research.
Despite Canadian Cancer Society being 4-times larger, Canadian Breast Cancer Foundation takes the top job in the merger. Lynne Hudson formerly President and CEO of Canadian Breast Cancer Foundation is now President and CEO of the merged Canadian Cancer Society, effective immediately. Before joining Canadian Breast Cancer Foundation in September 2015, Hudson spent 8 years with Plan Canada, and has an MBA and an engineering degree.
The timing of this merger and new leadership may cause delays. Canadian Cancer Society has just consolidated its provincial chapters under one national organization. Typically, after such consolidations, managements focus on optimizing operations rather than launching into another strategic initiative. The economies of scale from consolidation have yet to emerge.  
Merging strong consumer brands is tricky. Canadian Cancer Society and Canadian Breast Cancer Foundation have the two biggest brands in the cancer sector – and these brands are distinctive. The pink ribbon logo and the yellow daffodil are well known by Canadians. Canadians also support CIBC’s Run for the Cure (organized by Canadian Breast Cancer Foundation) and Relay of Life (organized by Canadian Cancer Society).
Given the strength of these charity brands, Charity Intelligence does not anticipate any cost synergies in fundraising. Charity Intelligence expects future fundraising costs to remain around $67 million annually. On current donations, this is 38% of total donations and special events.
The amalgamated charity has significant opportunities to reduce administrative costs. On a pro-forma basis administrative costs will be an estimated $28 million. CCS Board Chair Robert Lawrie anticipates cost savings of $15 million. More cost savings will be required to put the new amalgamated charity in an operating cash surplus.  Without cost reductions, on a pro forma basis, the merged charity spends 52% on fundraising and administrative costs, a level well above Charity Intelligence’s reasonable range and double the Canadian large charity average of 26%. CCS also has set the goal of reducing staff to 850. Both charities together had a staff of 1,187 at the end of their respective fiscal years 2016, to a reported 900 at present. Lawrie intends to amalgamate Canadian Cancer Society with more cancer charities. One aspect to watch is CCS’s unfunded pension liability and retirement benefits. 
The merger is expected to be approved in February 2017.